Islamabad, 19 July 2008: Giving a much-wanted boost to bilateral trade, Pakistan allowed import of diesel and CNG buses from India, besides adding 136 commodities to the positive list of items that can be sourced from the neighbouring country.

Under the new trade policy for 2008-09, the government said it would allow import of CNG buses as test consignments by any Indian manufacturer who made a firm commitment to establish units to make such vehicles in Pakistan.

Unveiling the new trade policy after it was approved by the Cabinet, the Pak Commerce Minister, Mr.Chaudhry Ahmed Mukhtar said, "Cheaper raw material sourced from India would make our exports more competitive in the international market."

Mukhtar, an industrialist whose family owns one of Pakistan's largest industrial groups, said, "We are allowing import of diesel and fuel oil from India because it will be cheaper due to the difference in transportation cost. This will also help us to address our global trade deficit."

Saying that the customs duty on imported CNG buses had been cut from 15% to nill in the 2008-09 budget, he said: "In case any Indian manufacturer of CNG buses makes a firm commitment to establish manufacturing of such buses in Pakistan, the Ministry of Commerce may provide special dispensation for import of 10 buses by road via Wagah from each possible investor as a test consignment."

Noting that the list of importable items from India is being enlarged following a "request of our stakeholders", he said: "India is our neighbour and we are gradually liberalising our bilateral trade".